Inflation Data Fuels Climb in Short-Term Treasury Yields

Yields on shorter-term U.S. government bonds rose after data showed inflation reached a 30-year high in October, reflecting investors’ expectations that the Federal Reserve will have to raise interest rates more quickly to combat surging consumer prices.

The yield on the two-year Treasury note, which often climbs when investors anticipate tighter central bank policies, rose back toward its highs for the year near 0.5%, according to Tradeweb. That compares with 0.409% at Tuesday’s close.